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2. IGT Incorporated is considering a project that costs $45 million and provides cash flows of $40 million in the first year, $20 million in
2. IGT Incorporated is considering a project that costs $45 million and provides cash flows of $40 million in the first year, \$20 million in year two, and \$30 million in year three. Assume a weighted average cost of capital of 11%. a. What is the payback period of this project? (6 points) b. What is the discounted payback period of this project? ( 8 points)
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